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Typically a down payment is required when an agreement of sale is
signed. This down payment is negotiable, some purchases can be 100%
financed, depending upon the lender and their product.
The closing costs for a buyer can include prorated a first
mortgage payment depending upon the day of closing. If closing is
on the first day of the month, the prorated amount would be for days
2 through 30. (This means taking the amount of the mortgage payment
and dividing it by 30), that amount is the daily cost. It is less
expensive to close during the last part of the month.
Some lenders require two or more months of real estate taxes paid
up front at closing, also the homeowners insurance must be paid in
advance for the first year. The rest of the down payment is paid at
closing. There is a fee for title insurance, the settlement closing
room as well as notary fees, payoff of mortgages if this is not a
first time buyer.
The best idea is to contact a mortgage lender or your bank before
beginning your home search. The lender will run a credit report,
and advise what type of mortgage would be best for you. This is
called a pre-qualification, or pre-approval. Armed with your
prequalification prior to making an offer on the house you desire is
very appealing to the Seller, and also helps the Real Estate agent
to only show homes that you can afford, thereby less time is wasted
from the start.
If you will be having an attorney review the Agreement of Sale,
his fee will be required at closing also.
For additional information, please contact any RE/MAX Connection
agent.
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